A Middlesex County-based community bank has announced plans to acquire a smaller Rumson lender in a bid to expand in wealthy communities near the Jersey Shore.

Cranbury’s 1st Constitution Bancorp will buy Rumson-Fair Haven Bank and Trust Co. in a cash-and-stock deal worth roughly $24.3 million, the banks said earlier today. Under the terms of the deal, holders of Rumson’s common stock can elect to receive either $7.50 in cash per share of Rumson stock, or 0.7772 of a share of 1st Constitution's stock.

The proposed merger, which needs regulatory and Rumson shareholder approval, is expected to close during the first quarter of 2014, the banks said.

Following the merger, 1st Constitution would grow to 19 branches, $1 billion in assets and $900 million in deposits. The five branches it would acquire are in Monmouth County towns including Shrewsbury, Fair Haven and Oceanport.

“As we integrate Rumson's attractive retail network with 1st Constitution's wide array of banking products and services, we believe (we) will be able to better serve our combined customer base and continue to build shareholder value,” Robert Mangano, 1st Constitution’s president and chief executive officer, said in a statement.

James Aaron, chairman of Rumson-Fair Haven, said in a statement that the deal will let the bank grow the size of the loans it can offer.

Today’s merger announcement is the latest to hit New Jersey’s community banking sector. Banking analysts and consultants have said they expect more such deals as community banks struggle to grow in a sluggish economy and under the stiff new regulations.